In what seems to be comprehensive restructuring of Indian operations of General Electric, the company plans to convert its two arms in the country into wholly-owned subsidiaries even as it will expand activities of a third company, GE Power Controls India.
GE Mauritius plans to buy out the Indian partner in GE Plastics and GE Lighting and convert them into 100 per cent foreign owned arms.
GE Pacific Mauritius plans to convert GE Plastics India into a wholly-owned subsidiary by buying out a little over 50,000 shares of the company held by Indian Petrochemicals Corporation Ltd and GE International, sources said in New Delhi on Tuesday.
GE Plastics India manufactures compounding line for alloys, blends compounds of engineering plastics including coloured resins, polyethylene oxide etc.
Then, the company has evinced interest in buying out the lone Indian resident shareholder in GE Lighting, again through GE Pacific (Mauritius), to effectively control the lighting arm in India, they added.
The government is believed to have permitted GE to carry out both these acquisitions.
In the case of GE Power Controls India, the company has sought government's permission to expand operations in the country by importing and distributing hi-tech wind turbine generator equipment, their parts and components, their assembly and after-sales service.
"GE Group companies and its affiliates overseas consider India as a vibrant economy with huge growth potential," the company said in its application seeking increased activities in India.
"Considering the presence of Indian companies in hi-tech manufacturing and project implementation sector, overseas GE businesses engaged in manufacturing and supply of hi-tech equipments for use in this sector are increasingly looking at India as an important destination for their quality products," it added.